The electric two wheeler market is projected to grow from USD 4.78 billion in 2025 to USD 9.71 billion by 2032 at a CAGR of 10.6%. Electric two-wheelers are evolving into connected mobility platforms equipped with features such as remote diagnostics, over-the-air (OTA) updates, predictive maintenance, and telematics for fleet management. Manufacturers are also introducing rider-assist and basic ADAS-like functions, including collision alerts and blind-spot warnings, to enhance safety. The rapid pace of urbanization and the growing use of shared mobility services are further integrating electric two-wheelers into urban transport ecosystems. Governments are also developing urban charging hubs, curbside chargers, and fast-charging solutions tailored to two-wheelers, particularly within planned fleet zones in dense delivery areas.
Automakers and suppliers, such as Toyota, Honda, Solid Power, and ProLogium, are rapidly advancing the R&D and pilot production of solid-state batteries, which offer higher energy density, improved safety, and faster charging. Toyota and Honda have plans to integrate these batteries into next-generation electric motorcycles later this decade. BMW Motorrad has partnered with Solid Power to assess SSB applications for performance-oriented two-wheelers. Once commercialized at scale, these batteries could extend vehicle range and reduce battery pack size, which would be particularly beneficial for high-performance electric motorcycles and long-range scooters. Meanwhile, sodium-ion and improved LFP battery chemistries are gaining popularity due to their lower cost and reduced dependence on materials like cobalt and nickel, making them suitable for mass-market two-wheelers. CATL and BYD are leading sodium-ion and LFP production, with CATL’s sodium-ion packs already integrated into Yadea’s and Niu’s electric scooters in China. Indian OEMs such as Ola Electric, Hero MotoCorp (Vida), and Greaves Electric Mobility (Ampere) are adopting advanced LFP packs sourced from Athera Energy Solutions and Sunlit Power, while Gogoro continues to optimize NMC-based swappable batteries for its smart scooter ecosystem.
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Electric scooters and mopeds are expected to dominate the electric two wheeler market during the forecast period. This rapidly growing segment of urban mobility provides a sustainable and convenient alternative to traditional petrol-powered vehicles. These compact two-wheelers utilize electric motors instead of gasoline, thereby reducing harmful emissions and providing an environmentally friendly option for city commuters. Due to advancements in battery technology, electric scooters and mopeds are now delivering strong performance, rapid acceleration, quiet operation, and longer range on a single charge. Their appeal is further enhanced by low operating and maintenance costs, making them increasingly popular. Rising petrol prices in emerging economies are also prompting more consumers to consider electric two-wheelers. Key global players in this segment include Yadea (China), NIU (China), Jiangsu Xinri Electric Vehicle Co., Ltd. (China), Ola Electric (India), Hero Electric (India), Gogoro (Taiwan), Okinawa (Japan), Silence (Spain), GOVECS (Germany), and Askoll (Italy). These companies have launched various models of electric scooters and mopeds to meet the diverse needs of consumers worldwide. For instance, in July 2025, Ather Energy (India) launched the 450S, featuring a 3.7 kWh battery pack and an extended IDC range of 161 km, further strengthening its performance-oriented 450 Series lineup. In January 2025, Greaves Electric Mobility Limited (India) introduced the Ampere Magnus Neo, an upgraded version of its Magnus electric scooter, equipped with an advanced lithium iron phosphate (LFP) battery for improved performance and durability.
The 3 kW motor power is expected to hold a significant share of the electric two wheeler market as it offers an optimal balance between performance and versatility. Models with over 3 kW power deliver higher top speeds, longer range, and more durable battery systems compared to under-3 kW variants, aligning closely with consumer expectations for performance similar to internal combustion engine (ICE) motorcycles. As battery and motor costs continue to decline, these higher-powered models are becoming more affordable, shifting from niche premium offerings to mainstream adoption. Additionally, evolving regulations in many regions are increasing permissible power and speed limits, prompting manufacturers to prioritize the above-3 kW category to meet compliance standards and user preferences. The expansion of fast-charging infrastructure and advanced battery management systems further enhances the practicality of these vehicles. Moreover, commercial users, particularly in ride-sharing and delivery fleets, are increasingly favoring higher-powered electric two-wheelers for their ability to handle heavier loads and longer operational hours. This trend, coupled with the rapid rollout of mid- and high-power electric models across the Asia Pacific, shows the growing dominance of scooters and motorcycles having a motor power of more than 3 kW.
North America is expected to hold a significant share of the electric two wheeler market, supported by a mature regulatory framework and strong zero-emission vehicle (ZEV) mandates that encourage the adoption of electric two-wheelers. The region is witnessing rapid infrastructure development, with expanding charging networks and urban mobility policies that enhance the practicality of electric scooters and motorcycles for both personal and fleet use. Growing consumer interest in sustainable mobility, driven by rising fuel prices, heightened environmental awareness, and urban congestion, is further accelerating demand. Additionally, the expansion of micro-mobility, delivery fleets, and shared mobility services across major cities is creating new growth avenues and scaling market volumes. In the US, substantial investments in EV charging infrastructure and road modernization are helping to mitigate range anxiety and improve user convenience. Major domestic manufacturers such as Zero Motorcycles, Harley-Davidson (through LiveWire), and Razor continue to drive innovation and technological advancements, strengthening North America’s leadership in the global electric two wheeler market.
The electric two wheeler market presents strong opportunities in areas such as urban last-mile delivery, fleet electrification, and the rising demand for affordable, long-range models. The growing adoption of battery-swapping and fast charging technologies, along with supportive government policies for exports and manufacturing, further strengthens market potential. Companies can capitalize on these opportunities by developing modular and scalable vehicle platforms for different applications, investing in advanced battery technologies such as LFP or battery-as-a-service models to lower upfront costs, and forming partnerships with fleet operators, energy companies, and charging networks to build steady revenue streams. Offering flexible ownership options such as rentals or subscriptions, ensuring reliable after-sales service, and integrating connected technologies such as predictive maintenance and OTA updates can enhance customer satisfaction and loyalty. Additionally, localizing supply chains, collaborating with regulators for policy benefits, and maintaining high standards of quality and safety will help manufacturers gain consumer trust and achieve long-term competitive advantage in this rapidly evolving market.
MARKET ECOSYSTEM
The electric two wheeler market ecosystem includes raw material suppliers, component suppliers, battery pack suppliers, charging infrastructure, and electric scooter manufacturers. Some of the major electric scooter and motorcycle manufacturers include Ola Electric (India), Bajaj Auto Ltd. (India), TVS Motor Company (India), Ather Energy (India), and Yadea Technology Group Co., Ltd. (China).
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